General Commercial Property Queries

Have you managed to lift the rental or reduced the outgoings since you purchased the property?

 

Hi

Not yet as we just recently settled.. and 2 tenants in both another year lease plys possible renewal after that

 

Generally you need to lift the rentals to pull equity out.

 

Thanks Beano...
Will eventually asknour property manager how will we go with this..

 

You should be across your leases to know when reviews are due, the type and the quantum. As you have been through due diligence recently, these matters should be top of mind eg. was the rent review due prior to purchase, has it been done, when will the options fall due, type of review upon option etc should all be diarised so you can maintain control of your investment.

 

I asked the same question before in this thread! My understanding is that commercial properties value is derived from the strength of the lease term and rental return. I think people would wait until a new lease agreement is signed or option is taken up ie you purchased a commercial property with two years left on the lease, but the current tenant decided take up the option of another 5 years which would increase the value of the property as it provides stability.

Good advice from Scott. I'm across my leases because I request my property manager to increase the CPI increase accordingly or market review if it says this. The lease agreement should provide you the dates. Don't rely on your property managers to remember as some increase are pretty significant and you are missing out otherwise!

 

It's often dependent upon the lease as reviews can be applied retrospectively eg. CPI is the last published prior to the review date, very few reviews are where ’time is of the essence ’and lapse.

You only miss out on getting the adjustment until you claim them.

 

Hello All,
This is the 1st CIP thread I have read as I am interested to get into CIP. I know there is alot to learn and understand the various options available in this stream. We do have some Resi IPs and an IP in SMSF. Hoping to learn the ropes within this stream specifically if want to invest under company structure instead of our names.

Came across this as we are not in position yo nid but hopefully it may help someone else and putting a link here to understand the analysis by professional CIP owner if they see this as an attractive option given the revnue and depriciation:-
Check out this property I found:
59 Sovereign Drive, Port Macquarie NSW 2444
59 Sovereign Drive, Port Macquarie, NSW 2444 - Medical & Consulting Property For Sale - realcommercial

Sent from: realcommercial app
Australia's Favourite Commercial Property App - realcommercial.com.au

Looking forward for your thoughts/opinions/criticism and guidance on loan structure etc.

 

What's reasonable in terms of pricing when it comes to leasing a commercial property out? I am in melbourne.

For a commercial real estate agent and their charges.

Thank you.

 

What are they asking? Have you checked a few commercial agencies? Rates will vary slightly depending upon the type of CIP but circa 11%+GST. Marketing and lease preparation are on top of that.

Are you using a purely commercial/specialist agency or the local residential agency who manages a couple of commercial properties?

 

Am using a commercial specialist - james gregson is the name. I don't think they are a big player compared to likes of cbre, jll etc.

Got a verbal quote of $3000 for marketing, 3-5% of property management and 10% + GST of first year rent if get a tenant. I don't think lease preparation cost has been mentioned.

Any other costs to be aware of. And no i haven't got a quote from the big boys yet - am assuming they are more expensive?

Thank you.

 

Can't say that I've heard of them.

Rates don't look unrealistic however you'd want to know more about the marketing.

They don't appear to have any properties for sale or lease on their website it is all on: https://www.commercialrealestate.com.au/real-estate-agents/james-gregson-commercial-35018

I'm not sure what Home - Teska Carson is like but might be worth the enquiry.

 

Any recommendations for an agent in Melbourne that you have used for leasing?

 

As above or possibly Stonebridge.

 

Thanks, Scott. I will check out Teska. As far as I remember, I think Stonebridge only does sales and not leasing.

 

Supposedly the lot according to their website.

 

You are right. Seems like they added a leasing team. I recalled speaking to an agent years back and was told they don't do leasing.

 

Are there commercial agents specialists say in the medical industry?

 

Not AFAIK, companies like IPN seek out their own sites to operate as medical centres and sublease to doctors, pathology, radiology and specialists.

 

Hi everyone, new to commercial property..
We received this from the property manangement, I am not sure to what she is referring to as unusual as I dont have any comparison for it as we only have one warehouse. And is it possible to ask the tenant to re sign the lease for early start of increase to 2023 rather 2024?